Video piracy has become rampant and is depriving Malayalam film industry of about Rs.150 crore, an amount almost equal to one-third of its annual investment.
The industry, which brings out about 150 films a year with a total investment of around Rs.450 crore, is incurring substantial loss in this regard. Industry sources told The Hindu here that the loss on account of video piracy has been pegged at around Rs.150 crore a year.
Soaring production cost and dwindling theatre collection have already eroded the financial base of the industry. Pirated versions of new releases reach across the world in minutes, offering easy viewing to scores of people. Video piracy, which gradually gained ground in the State in the eighties with the advent of video cassette, has virtually left the industry bleeding. The extensive reach of the Internet had only catalysed the process, sources said.
Production cost of a medium range film with novices or relatively new artistes in the lead could cost about Rs.2 crore, but the cost shoots up to Rs.15 crore on casting superstars and major artistes in the prime roles. Extended shooting schedules and a tendency to shoot song sequences overseas are also jacking up the production cost further. A super-starrer completed for Rs.14 crore and released with much fanfare bombed at the box-office recently.
Of the 150 films released in a year, less than 20 films register an impressive performance at the box office and some of them end up with three or four shows in the first day itself. Needless to say, collection of such films would not account for even 10 per cent of the production cost. Such setbacks invariably force producers to try their luck yet again and in such cases they seek an advance from exhibitors or distributors. As piracy goes unchecked, exhibitors and distributors are sceptical of advancing funds to start new films.
